New appointments and other compensation plan provisions

Ark. Code Ann. § 21-5-214 — under Compensation and Benefits.

Ark. Code Ann. § 21-5-214

(a) A new appointment to a position in a state agency covered by this subchapter shall be paid at the entry pay level for the grade assigned to the classification unless otherwise authorized by law.

(b) Special rates of pay may be established for either classifications or positions for the following reasons:(1) Compensation rate adjustments;(2) The need to retain trained, competent employees;(3) An employee assigned additional duties as a result of the elimination of a position by a state agency; or(4) To meet the requirements of state or federal laws.

(1) Compensation rate adjustments;

(2) The need to retain trained, competent employees;

(3) An employee assigned additional duties as a result of the elimination of a position by a state agency; or

(4) To meet the requirements of state or federal laws.

(c) (1) The Office of Personnel Management may approve a special rate of pay for a specific classification or position as a compensation rate adjustment up to forty percent (40%) above the entry pay level for the grade assigned to the classification.(2) (A) Following approval by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, the office may approve a special rate of pay under subdivision (c)(1) of this section exceeding forty percent (40%) above the entry pay level for the grade assigned to the classification.(B) A special rate of pay under subdivision (c)(2)(A) of this section shall not exceed the maximum pay level for the grade assigned to the classification.(C) (i) Determining the maximum number of employees, the maximum compensation of employees, and the maximum amount of appropriation of general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly and is usually accomplished by delineating the maximums in the appropriation act for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-20-101 et seq.(ii) In light of subdivision (c)(2)(C)(i) of this section, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this subdivision (c)(2).(iii) The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this subdivision (c)(2). If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this subdivision (c)(2) is void.(3) The office shall:(A) Maintain a list of classifications or positions for which a compensation rate adjustment has been established under this subsection; and(B) File a report of special rates of pay established due to compensation rate adjustments with the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, for review at the next regularly scheduled meeting following the approval.

(1) The Office of Personnel Management may approve a special rate of pay for a specific classification or position as a compensation rate adjustment up to forty percent (40%) above the entry pay level for the grade assigned to the classification.

(2) (A) Following approval by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, the office may approve a special rate of pay under subdivision (c)(1) of this section exceeding forty percent (40%) above the entry pay level for the grade assigned to the classification.(B) A special rate of pay under subdivision (c)(2)(A) of this section shall not exceed the maximum pay level for the grade assigned to the classification.(C) (i) Determining the maximum number of employees, the maximum compensation of employees, and the maximum amount of appropriation of general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly and is usually accomplished by delineating the maximums in the appropriation act for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-20-101 et seq.(ii) In light of subdivision (c)(2)(C)(i) of this section, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this subdivision (c)(2).(iii) The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this subdivision (c)(2). If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this subdivision (c)(2) is void.

(A) Following approval by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, the office may approve a special rate of pay under subdivision (c)(1) of this section exceeding forty percent (40%) above the entry pay level for the grade assigned to the classification.

(B) A special rate of pay under subdivision (c)(2)(A) of this section shall not exceed the maximum pay level for the grade assigned to the classification.

(C) (i) Determining the maximum number of employees, the maximum compensation of employees, and the maximum amount of appropriation of general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly and is usually accomplished by delineating the maximums in the appropriation act for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-20-101 et seq.(ii) In light of subdivision (c)(2)(C)(i) of this section, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this subdivision (c)(2).(iii) The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this subdivision (c)(2). If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this subdivision (c)(2) is void.

(i) Determining the maximum number of employees, the maximum compensation of employees, and the maximum amount of appropriation of general revenue funding for a state agency each fiscal year is the prerogative of the General Assembly and is usually accomplished by delineating the maximums in the appropriation act for a state agency and the general revenue allocations authorized for each fund and fund account by amendment to the Revenue Stabilization Law, § 19-20-101 et seq.

(ii) In light of subdivision (c)(2)(C)(i) of this section, it is both necessary and appropriate that the General Assembly maintain oversight by requiring prior approval of the Legislative Council or Joint Budget Committee as provided by this subdivision (c)(2).

(iii) The requirement of approval by the Legislative Council or Joint Budget Committee is not a severable part of this subdivision (c)(2). If the requirement of approval by the Legislative Council or Joint Budget Committee is ruled unconstitutional by a court of competent jurisdiction, this subdivision (c)(2) is void.

(3) The office shall:(A) Maintain a list of classifications or positions for which a compensation rate adjustment has been established under this subsection; and(B) File a report of special rates of pay established due to compensation rate adjustments with the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, for review at the next regularly scheduled meeting following the approval.

(A) Maintain a list of classifications or positions for which a compensation rate adjustment has been established under this subsection; and

(B) File a report of special rates of pay established due to compensation rate adjustments with the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee, for review at the next regularly scheduled meeting following the approval.

(d) (1) (A) A special rate of pay may be established to retain a trained, competent employee or due to the assignment of additional duties.(B) Except as provided in subdivision (d)(1)(C) of this section, a special rate of pay for the assignment of additional duties shall result in the blocking or freezing of a position by the state agency.(C) The office may approve a state agency's request not to block or freeze a position in connection with the approval of a special rate of pay for the assignment of additional duties if:(i) The assignment of additional duties is due to a newly established federal or state program or new requirements for an existing federal or state program; and(ii) The state agency agrees to not hire additional employees for the additional duties.(D) The assignment of additional duties shall be permanent and beyond the scope of work currently being performed by the employee.(E) The same employee shall not receive a special rate of pay under this subdivision (d)(1) more than one (1) time every two (2) years.(F) An increase for an agency director or a secretary of a cabinet-level department under this subdivision (d)(1) shall be initiated and approved by the Governor.(2) The office shall file a report of all salary increases established under this subsection with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, at the next regularly scheduled meeting following the approval for review.

(1) (A) A special rate of pay may be established to retain a trained, competent employee or due to the assignment of additional duties.(B) Except as provided in subdivision (d)(1)(C) of this section, a special rate of pay for the assignment of additional duties shall result in the blocking or freezing of a position by the state agency.(C) The office may approve a state agency's request not to block or freeze a position in connection with the approval of a special rate of pay for the assignment of additional duties if:(i) The assignment of additional duties is due to a newly established federal or state program or new requirements for an existing federal or state program; and(ii) The state agency agrees to not hire additional employees for the additional duties.(D) The assignment of additional duties shall be permanent and beyond the scope of work currently being performed by the employee.(E) The same employee shall not receive a special rate of pay under this subdivision (d)(1) more than one (1) time every two (2) years.(F) An increase for an agency director or a secretary of a cabinet-level department under this subdivision (d)(1) shall be initiated and approved by the Governor.

(A) A special rate of pay may be established to retain a trained, competent employee or due to the assignment of additional duties.

(B) Except as provided in subdivision (d)(1)(C) of this section, a special rate of pay for the assignment of additional duties shall result in the blocking or freezing of a position by the state agency.

(C) The office may approve a state agency's request not to block or freeze a position in connection with the approval of a special rate of pay for the assignment of additional duties if:(i) The assignment of additional duties is due to a newly established federal or state program or new requirements for an existing federal or state program; and(ii) The state agency agrees to not hire additional employees for the additional duties.

(i) The assignment of additional duties is due to a newly established federal or state program or new requirements for an existing federal or state program; and

(ii) The state agency agrees to not hire additional employees for the additional duties.

(D) The assignment of additional duties shall be permanent and beyond the scope of work currently being performed by the employee.

(E) The same employee shall not receive a special rate of pay under this subdivision (d)(1) more than one (1) time every two (2) years.

(F) An increase for an agency director or a secretary of a cabinet-level department under this subdivision (d)(1) shall be initiated and approved by the Governor.

(2) The office shall file a report of all salary increases established under this subsection with the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee, at the next regularly scheduled meeting following the approval for review.

(e) (1) (A) An employee who is promoted is eligible to receive a salary increase up to ten percent (10%).(B) However, an employee's rate of pay upon promotion shall not exceed the maximum pay level of the grade assigned to the classification.(C) The office may establish policies for the implementation of salary increases due to a promotion after review of the policies by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee.(2) An employee who upon promotion is receiving a rate of pay below the entry pay level established for the new grade shall be adjusted to the entry pay level for that grade.(3) An employee who returns to a position in a classification the employee formerly occupied within a twelve-month period after promotion from the classification is eligible for a rate of pay no greater than that for which the employee would have been eligible had the employee remained in the lower-graded classification.

(1) (A) An employee who is promoted is eligible to receive a salary increase up to ten percent (10%).(B) However, an employee's rate of pay upon promotion shall not exceed the maximum pay level of the grade assigned to the classification.(C) The office may establish policies for the implementation of salary increases due to a promotion after review of the policies by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee.

(A) An employee who is promoted is eligible to receive a salary increase up to ten percent (10%).

(B) However, an employee's rate of pay upon promotion shall not exceed the maximum pay level of the grade assigned to the classification.

(C) The office may establish policies for the implementation of salary increases due to a promotion after review of the policies by the Legislative Council or, if the General Assembly is in regular session, fiscal session, or extraordinary session, the Joint Budget Committee.

(2) An employee who upon promotion is receiving a rate of pay below the entry pay level established for the new grade shall be adjusted to the entry pay level for that grade.

(3) An employee who returns to a position in a classification the employee formerly occupied within a twelve-month period after promotion from the classification is eligible for a rate of pay no greater than that for which the employee would have been eligible had the employee remained in the lower-graded classification.

(f) (1) (A) (i) Upon demotion, an employee's pay shall be decreased by ten percent (10%).(ii) A state agency shall submit a request and receive prior approval from the office to decrease an employee's pay less than ten percent (10%).(iii) An employee may voluntarily accept a lower rate of pay that exceeds a decrease of ten percent (10%).(B) However, an employee's rate of pay upon demotion shall not exceed the maximum pay level of the grade assigned to the classification.(2) If the employee's salary falls below the lowest entry pay level of the new grade upon demotion, his or her salary shall be adjusted to the entry pay level for the grade.(3) If an employee's position is reclassified to a lower-graded position or to a position on a different pay table, the state agency may continue the employee's current rate of pay with the approval of the office.

(1) (A) (i) Upon demotion, an employee's pay shall be decreased by ten percent (10%).(ii) A state agency shall submit a request and receive prior approval from the office to decrease an employee's pay less than ten percent (10%).(iii) An employee may voluntarily accept a lower rate of pay that exceeds a decrease of ten percent (10%).(B) However, an employee's rate of pay upon demotion shall not exceed the maximum pay level of the grade assigned to the classification.

(A) (i) Upon demotion, an employee's pay shall be decreased by ten percent (10%).(ii) A state agency shall submit a request and receive prior approval from the office to decrease an employee's pay less than ten percent (10%).(iii) An employee may voluntarily accept a lower rate of pay that exceeds a decrease of ten percent (10%).

(i) Upon demotion, an employee's pay shall be decreased by ten percent (10%).

(ii) A state agency shall submit a request and receive prior approval from the office to decrease an employee's pay less than ten percent (10%).

(iii) An employee may voluntarily accept a lower rate of pay that exceeds a decrease of ten percent (10%).

(B) However, an employee's rate of pay upon demotion shall not exceed the maximum pay level of the grade assigned to the classification.

(2) If the employee's salary falls below the lowest entry pay level of the new grade upon demotion, his or her salary shall be adjusted to the entry pay level for the grade.

(3) If an employee's position is reclassified to a lower-graded position or to a position on a different pay table, the state agency may continue the employee's current rate of pay with the approval of the office.

(g) (1) If an employee accepts a new position that is a transfer, the employee may receive a change in pay, as follows:(A) If the employee's salary falls below the entry pay level of the new grade, then his or her salary shall be adjusted to the entry pay level for the grade; or(B) If a special rate of pay has been established pursuant to this section.(2) A transferring employee's rate of pay shall not exceed the maximum pay level of the grade assigned to the new position, unless otherwise authorized.

(1) If an employee accepts a new position that is a transfer, the employee may receive a change in pay, as follows:(A) If the employee's salary falls below the entry pay level of the new grade, then his or her salary shall be adjusted to the entry pay level for the grade; or(B) If a special rate of pay has been established pursuant to this section.

(A) If the employee's salary falls below the entry pay level of the new grade, then his or her salary shall be adjusted to the entry pay level for the grade; or

(B) If a special rate of pay has been established pursuant to this section.

(2) A transferring employee's rate of pay shall not exceed the maximum pay level of the grade assigned to the new position, unless otherwise authorized.

(h) An employee whose salary would be above the maximum salary level of the new grade after being placed in a lower-graded position on the same pay table because the original position has expired due to lack of funding, program changes, reorganization, or withdrawal of federal grant funds may continue to be paid at the same rate as the employee was being paid in the higher-graded position upon approval of the office after seeking the review of the Legislative Council or, if the General Assembly is in session, the Joint Budget Committee.

(i) If an employee who has been terminated for more than thirty (30) working days returns to state service, the state agency may offer up to the employee's last rate of pay not to exceed the maximum pay level established for the grade.

(j) Upon transfer of employment between state agencies, an employee is to receive a lump-sum payment from the original state agency for any overtime that has been accrued and not been paid and for any compensatory time accrued that has not been used at the higher rate of either the:(1) Average regular rate of pay received by the employee during the last three (3) years of his or her employment; or(2) Final regular rate of pay received by the employee.

(1) Average regular rate of pay received by the employee during the last three (3) years of his or her employment; or

(2) Final regular rate of pay received by the employee.

(k) Any special rate of pay established under this section shall not affect the salary level or salary eligibility of any existing employee within the state agency.

(l) (1) A special rate of pay is subject to the state agency's ability to certify funding for a special rate of pay established under this section.(2) A state agency shall not use merit adjustment funds for a special rate of pay established under this section.

(1) A special rate of pay is subject to the state agency's ability to certify funding for a special rate of pay established under this section.

(2) A state agency shall not use merit adjustment funds for a special rate of pay established under this section.

(m) The secretary of a cabinet-level department, the Governor, or the agency director may suspend discretionary special salary actions.

(n) (1) The office may authorize a classification realignment between legislative sessions to ensure proper classification of a position and address operation needs not previously anticipated.(2) A position that receives a classification realignment during the interim between legislative sessions shall remain at the realigned classification.(3) The office shall adopt policies establishing the procedures for classification realignments.

(1) The office may authorize a classification realignment between legislative sessions to ensure proper classification of a position and address operation needs not previously anticipated.

(2) A position that receives a classification realignment during the interim between legislative sessions shall remain at the realigned classification.

(3) The office shall adopt policies establishing the procedures for classification realignments.

(o) A state agency may establish an apprenticeship program upon approval of the office.